Man who allegedly made billions from Madoff Ponzi scheme dies

Philanthropist's body found at bottom of pool at his Florida mansion

PALM BEACH, FLA. -- Jeffry Picower, a philanthropist accused of profiting more than $7 billion from the investment schemes of his longtime friend Bernard L. Madoff, was found at the bottom of the pool at his oceanside mansion and died Sunday, police said. He was 67.

Picower's wife, Barbara, discovered his body and pulled him from the water with help from a housekeeper, authorities said. He was pronounced dead at Good Samaritan Medical Center about 1:30 p.m.

Palm Beach police are investigating the death as a drowning, but have not ruled out other potential causes.

Picower had Parkinson's disease and "heart-related issues," said William D. Zabel, the family's lawyer. He described Picower's health as poor. Picower's body showed no injuries, said Joseph Sekula, spokesman for the Palm Beach fire department.

"There wasn't anything noted as far as trauma or anything to the body," he said, adding that "it did appear that he was swimming, because he was wearing swimming trunks." Detectives were still at the house more than six hours after the emergency call. The iron gate to the Picowers' long driveway was open and several police cars were parked near the mansion. The home and property are worth more than $33 million, according to the county property appraiser's records.

Picower had been accused by jilted investors of being the biggest beneficiary of Madoff's schemes.

In a lawsuit to recover Madoff's assets, the trustee overseeing the liquidation of his assets, Irving Picard, demanded Picower return more than $7 billion in allegedly bogus profits. In an e-mailed statement Sunday, Picard said only that "litigation will continue." Zabel said in a statement that "there was progress towards a settlement with the trustee." Picower and his wife started the Picower Foundation in 1989, and it has given millions to the Massachusetts Institute of Technology, Human Rights First and the New York Public Library. It also funded diabetes research at Harvard Medical School.

The foundation, whose assets were managed by Madoff, said in its 2007 tax return that its investment portfolio was valued at nearly $1 billion.

After the Madoff scandal broke in December, the Picower Foundation said it would have to cease grant-making and would be forced to close.

But the lawsuit said Picower's claims that he was a victim "ring hollow" because he withdrew more of other investors' money than anyone else during three decades and should have noticed signs of fraud. The lawsuit alleges that Picower's accounts were "riddled with blatant and obvious fraud," and that he should have recognized that because he was a sophisticated investor.

Picower had asked that the lawsuit be dismissed, saying it was unsupported by the facts.

Madoff is serving a 150-year prison sentence after he admitted losing billions of dollars for thousands of clients over half a century career in which he rose to be a Nasdaq chairman. Madoff's attorney, Ira Sorkin, did not respond to a request for comment.

Jonathan Landers, an attorney representing a large group of victims, said in an e-mail that it was impossible to tell what effect Picower's death would have on efforts to recover money lost in Madoff's massive Ponzi scheme.